Anti-Corruption

Category: General

This webpage is part of collaborative efforts to ensure the public has information on what Fraud/corruption looks like and have accessible avenues to the complaints process where they believe breaches have occured.

Agency information is available including contact information for complaints to individual agencies.

The Cook Islands have ratified the United Nations Convention Against Corruption (“UNCAC”) which acknowledges that “corruption hurts the poor disproportionately undermines a Governments ability to provide basic services, feeding inequality and injustice and discouraging foreign aid and investment. Corruption is a key element in economic underperformance and a major obstacle to poverty alleviation and development” (UNCAC, 2004, p.iii). The Cook Islands Government is committed to the provisions of the ADB/OECD Asia Pacific Anti-corruption Action Plan Initiative in 2003 (“APACAP”). Local anti-corruption legislation, which includes but is not limited to the bribery provisions of the Crimes Act, the Proceeds of Crime Act, the Mutual Assistance in Criminal Matters Act, the MFEM Act and the PERCA Act. The Government confirms the importance of collective leadership, teamwork and partnerships within and outside government to effectively combat corruption, and the need to involve the community and private sector. However the Government acknowledges the limited resources and therefore the effectiveness of a cooperative approach in the fight against corruption as opposed to individual efforts. The Government reinforces their commitment to promote and strengthen anti-corruption measures and practices (Cabinet Minute CM (11) 0369).

What is Fraud/Corruption?

The definition of fraud varies among countries, however in simple terms, fraud is any act or omission that intentionally misleads, or attempts to mislead, a party to obtain a financial or other benefit or to avoid an obligation. For the purposes of this communication, fraud includes:

Corrupt practice, which is the offering, giving, receiving, or soliciting, directly or indirectly, anything of value to influence improperly the actions of another party;

Fraudulent practice, which is any act or omission, including a misrepresentation, that knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial or other benefit or to avoid an obligation;

Coercive practice, which is impairing or harming, or threatening to impair or harm, directly or indirectly, any party or the property of the party to influence improperly the actions of a party;

Collusive practice, which is an arrangement between two or more parties designed to achieve an improper purpose, including influencing improperly the actions of another party;

Abuse, which is theft, waste or improper use of assets related to government activity, either committed intentionally or through reckless disregard;

Conflict of interest, any situation in which a party has interests that could improperly influence that party’s performance of official duties and responsibilities, contractual obligations, or compliance with applicable laws and regulations;

Obstructive practices, which includes (a)deliberately destroying, falsifying, altering, or concealing of evidence material to an investigation; (b) making false statements in order to materially impede an investigation; (c) threatening, harassing, or intimidating any party to prevent it from disclosing its knowledge of matters relevant to the investigation or from pursuing the investigation; or (d) materially impeding contractual rights of audit or access to information

Retaliation against whistleblowers or witnesses, which is any detrimental act, direct or indirect, recommended, threatened or taken against a whistleblower or witness, in a manner material to a complaint because of the report or cooperation with an investigation by the whistle blower or witness.

MFEM Antifraud and Anticorruption Policy

MFEM Antifraud and Anticorruption Policy

The Cook Islands have ratified the United Nations Convention Against Corruption (“UNCAC”) which acknowledges that “corruption hurts the poor disproportionately undermines a Governments ability to provide basic services, feeding inequality and injustice and discouraging foreign aid and investment. Corruption is a key element in economic underperformance and a major obstacle to poverty alleviation and development” (UNCAC, 2004, p.iii).

The Cook Islands Government is committed to the provisions of the ADB/OECD Asia Pacific Anti-corruption Action Plan Initiative in 2003 (“APACAP”). Local anti-corruption legislation, which includes but is not limited to the bribery provisions of the Crimes Act, the Proceeds of Crime Act, Mutual Assistance in Criminal Matters Act, the Ministry of Finance and Economic Management (MFEM) Act and the Public Expenditure Review Committee and Audit (PERCA) Act.

The Government confirms the importance of collective leadership, teamwork and partnerships within and outside government to effectively combat corruption and fraud, and the need to involve the community and private sector. However the Government acknowledges the limited resources and therefore the effectiveness of a cooperative approach in the fight against corruption as opposed to individual efforts. The Government reinforces their commitment to promote and strengthen anti-corruption measures and practices (Cabinet Minute CM (11) 0369).

The MFEM considers any kind of fraud and corruption as very detrimental to the realisation of its vision and will therefore MFEM will not tolerate fraud and corruption in its activities and operations.

Therefore, the MFEM will focus on the following key policy objectives:

Establishing a systematic commitment to the implementation of the Antifraud and Anticorruption Policy for all staff members, consultants and service providers who collaborate with the MFEM; this includes consequences for involvement, directly or indirectly, in an act of fraud, corruption or wrongdoing.

Establishing proactive prevention by means of a due diligence obligation for MFEM staff.

Considering integrity and impartiality in all stages of tenders examination and assessment, selection of suppliers and procurement procedure or during services implementation or payment. Each member involved, from within or external to the MFEM, has to commit to the fight against fraud, corruption and wrongdoing.

In addition to the Anti-fraud and Anti-Corruption Policy, MFEM also have in place a Whistleblowing Procedure.

Whistleblowing Procedure

The Ministry of Finance and Economic Management (MFEM) considers fraud and corruption as detrimental to the realisation of the vision and objectives of the Ministry. As such, the MFEM has adopted an Antifraud and Anticorruption Policy. The main elements of this Policy can be summarised as follows:

Establishing a systematic commitment to the implementation of the Antifraud and Anticorruption Policy for all staff members, consultants and service providers who collaborate with the MFEM; this includes consequences for involvement, directly or indirectly, in an act of fraud, corruption or wrongdoing.

Establishing proactive prevention by means of a due diligence obligation for MFEM staff.

Considering integrity and impartiality in all stages of tenders examination and assessment, selection of suppliers and procurement procedure or during services implementation or payment. Each member involved, from within or external to the MFEM, has to commit to the fight against fraud, corruption and wrongdoing.

The Whistleblowing procedure summarises MFEM procedure for the treatment of fraud, corruption or similar acts, with all transparency, independence, and rigour.

MFEM Anti-money Laundering and Counter Terrorism Financing

MFEM Anti-money Laundering and Counter Terrorism Financing

The Cook Islands has a reputation as a sound and well-regulated jurisdiction. It is essential for the country to maintain this reputation in order to continue attracting legitimate investors with funds and assets that are untainted by criminality. Anyone in the Cook Islands that assists with facilitating financial misconduct, whether knowingly, unintentionally or without regard to what they may be facilitating, could face law enforcement action as well as the loss of reputation and customers. This kind of conduct also damages the reputation of the Cook Islands as a whole.

The Financial Transactions Reporting Act 2017 (the Act) replaces the Financial Transactions Reporting Act 2004 and along with the Financial Transaction Reporting Regulations 2017 (the Regulations), provide the legal framework in which reporting institutions must have in place compliance systems to assist with the prevention, detection and prosecution of financial misconduct.

The Ministry of Finance and Economic Management (MFEM) is a low risk organisation in terms of its financial transactions, given that its transfer of funds into the country is only from development partners, who are governments and multilateral organisations already committed to combat money laundering and counter terrorism financing. However, the MFEM recognises that the fight against money laundering and financing terrorism is a global issue, and that an important stakeholder in the Cook Islands Government, it to must be committed to play its part in the country’s commitment against money laundering and financing terrorism.

This Anti-money Laundering and Counter Terrorism Financingaims to provide the perspective of the MFEM on money laundering and financing terrorism and the actions that it will undertake to prevent money laundering and financing terrorism. The Policy is aligned to the Practice Guidelines for Financial Transactions Reporting Act 2017, issued by the Financial Intelligence Unit, in August 2017.

This Policy also recognises the following legislations and regulations related to financial misconduct:

General Nature of Complaints

Generally complaints will be in relation to exercising the responsibilities imposed by the Legislation administered by the Ministry. They may also relate to the incorrect implementation of the Policies and Procedures referred to above.

Legislations

Downloads

Office of the Public Service Commissioner

The legislated function for the Office of the Public Service Commissioner is to assist the Public Service Commissioner with the administration of the Public Service Act.

Statutory functions include: recruitment and performance management of heads of departments (ministries), establishing personnel policies and standards for the public service, approving organisation staffing structures, determining the salary ranges of public service positions and administering the remuneration system of government, ensuring compliance with the public service code of conduct, resolving employment disputes, inquiring into matters of public administration, providing advice on training and career development, reviewing the machinery of government and tendering advice to Ministers of the Crown. Other services include: advice on departmental planning and reporting; administering heads of department salaries, leave and official duty travel, including the New Zealand Government Superannuation Fund.

Complaints & Disputes

1. Public complaints regarding the conduct from those listed below should be reported to the Office of the Public Service Commissioner:

Heads of Ministries

Heads of Departments

Public service employees

2. Public complaints regarding service delivery or poor public administration should be reported to the Office of the Public Service Commissioner:

Heads of Ministries

Heads of Departments

Public service employees

3. Employment disputes must be lodged with the respective head of department or Public Service Commissioner (for heads of departments only) within 14 days of the circumstances giving rise to the dispute. The Head of Department (or Commissioner) must resolve the dispute. Unresolved disputes are referred to the Public Service Commissioner or Public Service Appeal Board (for Heads of Departments) to resolve.

General Nature of Complaints

Poor or substandard service delivery

Breaches of Public Service operational policies e.g. Leave

Breaches of the Public Service Code of Conduct

Note: Job sizing/evaluation disputes are not considered.

Legislations

Principal Act:

Public Service Act 2009

Other relevant Acts:

Employment Relations Act 2012

Commissioner's of Inquiry Act 1966

MFEM Act 1995-96

PERCA Act 1995-96

Downloads

Te Mato Akamoeau, Office of the Ombudsman

The Ombudsman is an independent and impartial officer of and responsible to Parliament. The Ombudsman investigates complaints received from the general public, but is also mandated to initiate an investigation of his own motion. It is also responsible for investigating complaints under the Official Information Act, Disability Act and the Police Act. It was tasked by Cabinet to set up a Human Rights mechanism within the Cook Islands.

Te Akinanga o te Ture, Crown Law Office

The Crown Law Office is a statutory organisation whose principal functions are to advise the Government of the Cook Islands on legal matters that may be referred to it by the High Commissioner, Cabinet, a Minister, the Ombudsman a head of department, or a statutory body or Corporation. The head of the Crown Law Office is the Solicitor-General, the Junior Law Officer of the Crown.